Financial Data and Key Metrics Changes - The company reported a net income of $54.4 million, or $0.54 per share, for Q2 2025, with consolidated revenue increasing to $698 million, a 4% increase year-over-year [5][6] - Consolidated operating income rose by 31% to $79.2 million, and consolidated adjusted EBITDA grew by 20% to $103 million [6][20] - Free cash flow for the quarter was $46.9 million, with an ending cash position of $434 million and no borrowings under the secured revolving credit facility [6][7] Business Segment Performance - Subsea Robotics (SSR) saw operating income improve by 4% to $64.5 million, with revenue increasing approximately 2% and an EBITDA margin of 35% [8][9] - Manufactured Products generated operating income of $18.8 million, marking a 31% rise, with revenue growing by 4% to $145 million [10][11] - Offshore Projects Group (OPG) reported operating income of $21.7 million, with revenue increasing by 4% and operating income margin expanding to 15% [12][13] - Aerospace and Defense Technologies (AdTech) operating income increased by 125% to $16.3 million, with a 13% increase in revenue [15][17] Market Data and Key Metrics Changes - ROV revenue per day increased to $11,065, with fleet utilization at 67% [5][8] - The company maintained a 60% share of the contracted floating rig market with ROV contracts on 81 of the 136 floating rigs under contract [9] - The company anticipates continued tendering activity supportive of ROV utilization and pricing assumptions, particularly in decommissioning opportunities in Europe [9][10] Company Strategy and Industry Competition - The company remains positive about growth in both energy and aerospace and defense markets, with expectations for continued growth beyond 2025 [23] - The recent reconciliation bill is expected to positively impact all three AdTech business lines over the next five years, particularly in unmanned underwater vehicles [18][23] - The company is gearing up to increase capacity to serve the submarine maintenance and repair market due to anticipated funding increases [55] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to sustain market share and improve operational results across segments [21][22] - The outlook for Q3 2025 includes expected increases in consolidated revenue and EBITDA, with projections for SSR and AdTech showing significant growth [19][20] - Management noted that visibility into future contracts has improved, particularly with larger international contracts [49] Other Important Information - Unallocated expenses for the quarter were $46.7 million, slightly higher than guidance [19] - The company has secured order commitments totaling approximately $100 million in the first weeks of Q3 2025 [11][32] Q&A Session Summary Question: Impact of offshore rig white space on business - Management acknowledged some impact but noted that pricing improvements have offset concerns, with expectations for ROV utilization to reach 70% by year-end [26][27] Question: Orders in the manufactured product segment - Management indicated that orders are expected to be flat year-over-year, with positive signals for 2026 [30][32] Question: ROV utilization outlook - Management stated that the lower utilization outlook relates to both vessel and rig support, with increased clarity on plans for Q4 [39][40] Question: Free cash flow visibility - Management highlighted that cash flow typically rebounds in Q3 and Q4, with significant amounts sitting in receivables [42][44] Question: OPG business visibility - Management confirmed improved visibility due to securing larger contracts, which stabilizes the business [48][49] Question: Potential impact of the reconciliation bill - Management discussed the positive implications for OTEC and other business lines, particularly in defense and space sectors [50][55]

Financial Data and Key Metrics Changes - The company reported a net income of $54.4 million, or $0.54 per share, for Q2 2025, with consolidated revenue increasing to $698 million, a 4% increase year-over-year [7] - Consolidated operating income rose by 31% to $79.2 million, and consolidated adjusted EBITDA grew by 20% to $103 million [7] - Free cash flow for the quarter was $46.9 million, with an ending cash position of $434 million and no borrowings under the secured revolving credit facility [7] Business Segment Data and Key Metrics Changes - Subsea Robotics (SSR) saw operating income improve by 4% to $64.5 million, with revenue increasing approximately 2% and EBITDA margin expanding slightly to 35% [9] - Manufactured Products generated operating income of $18.8 million, marking a 31% rise over the previous year, with revenue growing by 4% to $145 million [11] - Offshore Projects Group (OPG) reported operating income of $21.7 million, with revenue increasing by 4% and operating income margin expanding to 15% [13] Market Data and Key Metrics Changes - ROV revenue per day increased to $11,065, with fleet utilization for the quarter at 67% [6][9] - The company maintained a 60% share of the contracted floating rig market with ROV contracts on 81 of the 136 floating rigs under contract [10] - The company anticipates continued tendering activity supportive of ROV utilization and pricing assumptions, particularly in decommissioning opportunities in Europe [10] Company Strategy and Development Direction - The company remains positive about growth in both energy and aerospace and defense markets, with expectations for continued growth beyond 2025 [23] - The company is focusing on integrating Global Design Innovation into its Integrity Management business and identifying pilot projects to demonstrate new capabilities [15] - The recent passage of the reconciliation bill is expected to positively impact all three AdTech business lines over the next five years [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of execution and resilience of the business, noting eight consecutive quarters of meeting or exceeding adjusted EBITDA guidance [4] - The company expects to see solid vessel utilization and activity levels for OPG based on current backlog and quotation activity [14] - Management indicated that while the macro environment is encouraging, they do not expect activity to reach the same level as Q4 2024 [15] Other Important Information - Unallocated expenses for the quarter were $46.7 million, slightly higher than guidance [19] - The company has secured order commitments totaling approximately $100 million in the first weeks of the quarter, supporting confidence in the second half forecast [12] Q&A Session Summary Question: Impact of offshore rig white space on business - Management acknowledged some impact but noted that pricing increases have offset concerns, with expectations for overall ROV utilization to reach 70% by year-end [27][28] Question: Orders in manufactured products segment - Management indicated that orders are expected to be more flattish year-over-year, with positive signals for subsea business and umbilicals [30][34] Question: ROV utilization outlook - Management stated that the lower utilization outlook relates to both vessel and rig support, with increased clarity on plans for the fourth quarter [40][41] Question: Free cash flow visibility - Management highlighted that cash generation typically rebounds in Q3 and Q4, with a good amount of cash sitting in receivables [43][44] Question: Visibility in OPG business - Management confirmed increased visibility due to securing larger international contracts, which provide a stable base for future work [48] Question: Impact of the reconciliation bill - Management discussed the positive effects on OTEC and other business lines, with expectations for increased funding and project activity in space and submarine maintenance [50][56]

Core Viewpoint - Nauticus Robotics, Inc. is progressing towards record-breaking revenue and technological milestones in 2025, with a focus on combining traditional ROV work with autonomous capabilities through the integration with SeaTrepid [1][3]. Company Developments - Nauticus ROVs completed projects for six different customers in the second quarter, supporting the wind industry along the U.S. East Coast and the energy sector along the U.S. Gulf Coast [2]. - The third quarter of 2025 will see the initiation of revenue generation from the Aquanaut® vehicle, marking a significant step in the company's deployment of its flagship underwater vehicle [2]. - The Aquanaut® vehicle is expected to execute projects at ultra deepwater depths of up to 2,200 meters by the end of summer 2025, which will be its first revenue-generating operation at these depths [4]. Market Position and Customer Engagement - The year-over-year reduction in customer concentration indicates strong growth in market adoption and diversification for Nauticus [3]. - Current and new customer discussions confirm market acceptance of Nauticus' combined offering of ROV and Aquanaut® vehicle, with customers eager to see the Aquanaut® in action [3]. - The second half of 2025 is anticipated to increase excitement and exposure for Nauticus' offerings, with promising discussions ongoing with customers [4]. Technological Innovation - Nauticus Robotics develops autonomous robots for ocean industries, utilizing sensors, artificial intelligence, and effective algorithms for perception and decision-making [6]. - The company is testing and certifying a new generation of vehicles aimed at reducing operational costs and improving data collection for subsea infrastructure maintenance [6]. - Nauticus' approach includes retrofitting traditional ROV operations and developing technology products for third-party vehicle platforms, enhancing operational efficiency and reducing environmental impact [6].

Oceaneering International, Inc. (NYSE:OII) Q4 2024 Earnings Conference Call February 20, 2025 11:00 AM ET Company Participants Hilary Frisbie – Senior Director-Investor Relations Rod Larson – President and Chief Executive Officer Alan Curtis – Senior Vice President and Chief Financial Officer Conference Call Participants Eddie Kim – Barclays Kurt Hallead – Benchmark Company Josh Jayne – Daniel Energy Partners Desiree Welcome to Oceaneering's fourth quarter and full year 2024 earnings conference call. My nam ...